Investment Bank, SHUAA Capital recently announced that it acquired a 55 percent stake in the Gulf Finance Corporation (GFC) in a move aimed at broadening its financial services offering to its investors in the United Arab Emirates (UAE), confirmed a press release. While the purchase price was not disclosed, SHUAA Capital said it values GFC at 47 million Emirati Dirhams ($12 million).
SHUAA Capital acquired its majority stake in GFC from Investbank. Investbank will remain a major banker to GFC, confirmed its Managing Director Amjad Dwaik. Commenting on SHUAA's plans for GFC, Duwaji noted that he expects its earnings to grow in 2002 to four million Emirati Dirhams. He added that the bank plans to introduce new financial products to widen GFC's existing portfolio.
GFC is licensed by the UAE Central Bank as a finance company able to provide installment credits, receivable financing, bills discounting, letters of credit and guarantees and accept corporate deposits. It is one of three main finance houses in the UAE, which specializes in consumer financing, and asset based lending. GFC has one main office in Dubai but plans to expand to Sharjah and Abu Dhabi.
SHUAA Capital was established in 1979, with the principal goal of investing in, and promoting investment into, the Arab World. It pursued its investment strategy by focusing initially on private equity investments in the region and later proprietary trading in Arab listed securities.
In 1996, SHUAA Capital was licensed by the UAE Central Bank in 2000 to offer financial services and products including fund and portfolio management; corporate finance activities, underwriting of securities; investment advisory services; and brokerage of local and international securities. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
